A large part of the money came from the profits he made from the IPO of Waze, an Israeli GPS-based map software company, in which he held an 11 percent stake that eventually acquired by Google. The Washington Institute for Near East Policy, China Below the Radar: Israel-US Strategic Dialogue on Technology, In a joint press conference with Prime Minister Yair Lapid on July 14, 2022, President Biden. [69], Israel was ready to sell China the Phalcon, an Israeli airborne early-warning radar system (AWACS), until the United States forced it to cancel the deal. In November 2008, then China Ambassador to the United States Yesui Zhang stated that the "continued construction of settlements on the West Bank is not only in violation of Israel's obligations under international law, but is also detrimental to guaranteeing Israel's own security." The National Technology Transfer East Center, which undertook the task of building the China-Israel technology transfer platform at the end of 2018, has been involved in the conversion of results from China-Israel cooperation in the early years, and participated in promoting the "Promotion Meeting for the Construction of China-Israel (Shanghai . [22] In the early 1990s, China joined a number of nations who established ties with Israel after the initiation of a peace process between Israel and the PLO in the early 1990s; it also desired to play a role in the peace process. The Israeli government responded to this pressure partially by establishing an advisory, On the eve of then-Prime Minister Naftali Bennetts first meeting with President Biden, his office announced that Israel was taking American concerns about China seriously and regarded it as a matter of national security. [1] However, China did not establish normal diplomatic relations with Israel until 1992. According to Wray, in 2020, the FBI opened a China-related counterintelligence case every ten hours on average. Please try again or choose an option below. The United States is also taking action to form a, The official steps that led to the recent statement have not yet been made public, but the outlines of this new approach to US-Israel relations in the era of Great Power competition were already published in March 2022 in a, Israel Expands Settlements as Smotrich Increases His Authority. An industry source told Reuters that Intel . [130], Chinese involvement in the Israeli technology sector has also generated security concerns. Brig. [109] Recent high end deals include a Chinese donation of $130 million to Technion for a research center, Beijing winning a $2 billion tender to build the Med-Red railway linking Ashdod port with Eilat as well as a $1 billion Israeli port tender, a $300 million joint research center between Tel Aviv University and Tsinghua University, and Chinese acquisition of a controlling stake in Israel's Tnuva dairy company for more than US$1 billion. The conference was titled, "Navigating Through the Storm: Israel and the U.S.-China Rivalry" and brought together a number of experts to analyze the issues surrounding Israel, the United States and China. As China rolls out technology infrastructure like 5G bay stations, Washington is worried that Beijing will accrue leverage and access . [12] Israel and China began extensive military cooperation as early as the 1980s, even though no formal diplomatic relations existed. GAO YANPING", "Jewish History in China Boosting Sino-Israeli Relations", "How Israel Used Weapons and Technology to Become an Ally of China", "Will the Middle Kingdom Join the Middle East Peace Quartet? In addition, U.S. companies have established 344 R&D centers in the country, Chinese companies only 9. China-Israel Technology. The United States and Israel, a recipient of over $3 billion in U.S. military aid, often co-develop weapons and coordinate their sales to ensure that sensitive technology doesnt fall into enemy hands. which China has sought Israel to invest in as an alternative. In Hebrew : - Yechasei Yisrael-Sin) comprise the diplomatic, economic, cultural, and military ties between the People's Republic of China and the State of Israel.. The largest threat to Israel is from Chinas technological espionage program. For two decades since September 11, 2001, cooperation between Israel and the United States was defined by the global war on terror. The hub is now home to around 100 companies and institutes from China and Israel in industries like smart manufacturing and healthcare. Subscribe to the weekly Policy Currents newsletter to receive updates on the issues that matter most. aviation employee. While the exact cause of his death is unknown, it is believed he died of natural causes. A major U.S. concern is that China's quest for foreign technology targets Israel as a potential source. Registering also lets you comment on articles and helps us improve your experience. The Pardee RAND Graduate School (PardeeRAND.edu) is home to the only Ph.D. and M.Phil. 2000 was the year that saw the most new Israeli listings on the exchange - 33 companies. On January 23, 1992, the Foreign Minister of Israel David Levy paid a four-day visit to Beijing, preceding the formal establishment of ties. What is the nature of Chinese investment in Israeli technology and infrastructure? The largest number of investments is in companies in the life sciences sector (these include medical technologies, biotechnology, biochemistry, and pharmaceuticals - 122 deals in all), followed by investments in software development and IT companies (108 deals); China also invests in companies in the internet . Herepeatedthis message at a summit with leaders from the Gulf and Arab countries on July 16. Israel began selling military technology such as missiles, radars, and navigation systems to China in the 1980s, even before Beijing recognized Israel, and technology trade quietly intensified in the 1990s. Shira Efron is director of research at Israel Policy Forum and head of the Climate Change and National Security Program at INSS. This venture has proven a success for the Chinese and a failure for the Israeli media, which uncritically swallow the messages sent out by CRI's Hebrew team. To bring down the cost of production for the many consumer and industrial . The China-Israel wiki seems to show relatively friendly relations. [15][90][91] Throughout Israel's early economic history, many Israeli startup companies were acquired by major U.S. and Western European corporations. [72] On 25 May 2011, the Commander of the People's Liberation Army Navy, Admiral Wu Shengli, made an official visit to Israel, meeting with Barak and Rear Admiral Eliezer Marom. Chinese and Israeli interests in the Middle East are incompatible. The amount of venture capital money invested in Israeli companies has risen 50% in the last three years. Overall, the FBI concluded that economic espionage cases linked to China have increased by 1,300% in the past decade. Catherine Leung discusses opportunities for collaboration between China and Israel's tech industry. China as an issue per se ostensibly went no further during Bidens visit, but the details indicate otherwise. [119] On October 2, 2017, the Chinese-owned Israeli-based mobile gaming development company Playtika Ltd. agreed to acquire Israel's Jelly Button Games Ltd. looking to expand its offerings into the casual-game space for an undisclosed sum. Danit Gal is a consultant and researcher focusing on technology ethics, governance, safety, security, and strategy. Click the link in that email to complete registration so you can comment. [77][78] The vessels and crewmen were welcomed by the Haifa base commander, Brigadier General Eli Sharvit,[78] and Chinese embassy officials. But both Israel and the UAE, realize that beyond the benefits of a strong Chinese relationship, lie dangers given Chinas propensity to support geopolitical actors who are natural enemies of Israel. It takes just a few seconds. While China does a lot of business with Israel, its international support for Palestine limits its political cooperation with the Jewish state. [7] China is Israel's third largest trading partner globally and largest trading partner in East Asia. May 31, 2021, 12:24 pm. Santa Monica, CA: RAND Corporation, 2020. https://www.rand.org/pubs/research_reports/RR3176.html. ", "Misconceptions and lessons about Chinese and Jewish entrepreneurs", "The Common Ground between China and Israel", "Jewish and Chinese: Explaining a Shared Identity", "Shavei Israel | Why do the Chinese admire the Jews? [35] Israel's open, innovative and risk-taking approach to high-technology as well as Israel's reputation high-tech superpower has been appealing to the typical Chinese entrepreneur, as the concept of risk taking is not deeply rooted in China's culture with its approach to failure. [114] On September 2 2015, Fosun International made another investment in Israel where it agreed to purchase the Ahava cosmetics firm for NIS 300 million (US$77 million). China and Israel's cooperation in technological innovation is highly complementary, said Zhao Dongliang, director of the Changzhou Israel Innovation Park, the first experimental zone for innovation cooperation established by the two governments. According to The New York Times, Israel lobbied for the sanctions by explaining to China the impact of any pre-emptive strike on Iran would have on the world oil supply, and hence on the Chinese economy. "Israel can be a partner, a junior partner, but a perfect partner for China in the development of a variety of technologies that change the way we live, how long we live, how healthy we live . But how did a state the size of New Jersey with nine million inhabitants become a technology giant and a favourite destination for tech multinationals? Such an agreement thus far exists only between the United States and three of its closest and most advanced allies: Britain, Australia, and Japan. [121][102], Israel's increasing defense cooperation with China has caused concern in Western nations, particularly the United States, which is the largest foreign supplier of military equipment to Israel. What are the security implications of Chinese investments in Israeli technology and infrastructure? Since then, the Trump and Biden administrations have pressured Israeli governments to reduce the transfer of technology to China, fearing that it would help strengthen the Chinese military and economy at the expense of the United States. And what about Israel? The Bank of China subsequently denied providing banking services to terrorist groups: "The Bank of China has always strictly followed the UN's anti-money laundering and anti-terrorist financing requirements and regulations in China and other judicial areas where we operate. February 1, 2023 Israel had more companies listed in 2012 on the NASDAQ stock exchange than any country outside the United States, save China. [28], During the 2014 IsraelGaza conflict, it was reported that Israel was winning the public opinion battle in China with most Chinese social media users siding with Israel. Chinese Jews have been a major impetus in maintaining the strong nexus between the Chinese and Jewish civilizations. Israeli media reported that these tenders "were seen by officials in Washington as a major test of the Israeli government's policy towards China.". [120] In 2017, China became Israel's fastest growing source of tourists as 2017 was the first year when the number of Chinese tourists surpassed 100,000. China and Israel have hosted many reciprocal business events that facilitate cooperation between Chinese and Israeli firms, usually with Israel providing technology to an established Chinese company. Fax: 202-223-5364. [80][113] In the first half of 2015, China invested more than $2 billion compared to just $300 million for all of 2014. [36] The scientific and technological advancements made by Israel had led many Chinese politicians to respect the country's ingenuity and creative inventiveness because they know of the contributions that as Israeli agricultural, drip irrigation, and solar energy technologies are seen as crucial to China's economic development. The dialogue will be in an inter-agency format, with annual meetings held alternately in the two countries, the first of which is scheduled to take place in Israel this fall. our company vision , Israel China Technologies Ltd. is By the projects we set up together. Once registered, youll receive our Daily Edition email for free. The economic ties between Israel and China have greatly strengthened in the past decade and received a push from a 2014 government decision that removed roadblocks and advanced technological and other cooperation agreements with China. Surging Chinese Commercial Technology Trade. Despite China being a great market for Israeli technology and products and Israel-China relations having been rather cordial, Israel does realize that it cannot continue to sit on the fence. Since 1979, Israel has sold China billions of dollars in military equipment and technology, mostly key components and technology prototypes. [84], In March 2015, Israel joined China's newly constituted Asian Infrastructure Investment Bank (AIIB), becoming a founding member of the institution postulating that Israel may become a major economic ally of China. Washington D.C. 20036 "For the United States, China is a threata three-pronged threat that's strategic . Playtika was a pioneer in the free-to-play games on social networks and mobile platforms and is the creator of popular titles, such as Slotomania, House of Fun and Bingo Blitz, which consistently ranked among the top-grossing games on Apple's App Store, Google Play and Facebook. Israel is one of the few countries (the other being another staunch ally the United Arab Emirates), which has been pulled into tensions and drama in between the US and China. [80] In January 2015, a number of Chinese information technology companies began to make investments in Israel, Chinese e-commerce giant Alibaba invested an undisclosed sum in Visualead, an Israeli company specialising in QR code technology. [12][13] China is one of the few countries in the world to concurrently maintain warm relations with Israel, Palestine, and the Muslim world at large. But following U.S. intervention in two crises related to Israeli upgrades and sales of military technology to the PRC the Phalcon crisis in 2000 and the Harpy incident in 2005 Israel put an end to its defense relations with China and implemented an export control law, which placed restrictions on arms and dual-use technology exports. [116] Due to the lack of red tape and the wide array of start-up businesses offered by Israel's Silicon Wadi, Chinese investment in Israel jumped more than tenfold in 2016 to a record US$16.5 billion, with money flowing into the country's booming internet, cyber-security and medical device start-ups. Previously in 2012, Chinese operatives had lured two Russian academics to obtain nuclear missiles-related information. [98][100], More than 1000 Israeli start-up companies have set up operations in China. ", "Stopping the crackdown on China's Jews - Opinion - Jerusalem Post", "Israeli Woman in China Gets Respect, Not Anti-Semitism", "Are Jewish Women More Likely to Marry Chinese Men? He served in the Craxi government in the 1990's as the special assistant to the deputy Prime Minister and Minister of Justice Martelli and worked closely with anti-mafia magistrates Falcone and Borsellino. They reached several high-level agreements, including a $1 billion Israeli-Russian sale of military aircraft to China. IVC estimates 138 have a presence in China. The second paragraph (in the text issued by Washington) pledges to boost our mutual innovation ecosystems, to deepen bilateral engagements, advance and protect critical and emerging technologies in accordance with our national interests, democratic principles and human rights, and to address geostrategic challenges, i.e., not merely economic or scientific challenges. ", Long before diplomatic relations were established in 1992 Israel had been selling arms to China. Locating innovative technologies and setting up innovative technology-intensive projects. And, finally, there is the possibility that China will exploit Israeli technology in . ", "China seeks strategic foothold in Israel | World | DW | 24.03.2014", "Chinese-Israeli Economic Alliance Is Going On And Strong | The Kaipule Blog", "China Israel, Why China is interested fostering economic relationships with Israel? Other countries, including the U.S., work to lure top IP . U.S. Says Israel Gave Combat Jet Plans to China. Moreover, even though the partnership is solely between the two countries, another player, albeit not explicitly mentioned, emerges between the linesChina. [101][36] At present, there are thousands of Jewish and Israeli expatriate businessmen residing in various Chinese cities, mainly Shanghai and Beijing looking to do business with Chinese entrepreneurs and Chinese technology companies. [103] In September 2011, the Israeli Minister of Transport, Israel Katz, stated that China and Israel were discussing the construction of a high-speed rail link joining the Mediterranean Sea with the Red Sea. Concerned about Chinas potential use of advanced airborne early-warning (AEW) radar systems, the United States dissuaded Israel from lucrative arms deals in 2000 and 2005, souring Chinese-Israeli security trade relations. And it has often accused China of engaging in such activity through attacks against American companies to steal commercially valuable intellectual property data such as corporate strategies, product designs, business negotiations, and dual-use technology-related data. The report concludes with a set of open-ended questions that merit further investigation to better understand the magnitude of risks associated with Chinese investment in the Israeli market. Israeli officials have beenespecially vocal about the risks posed by military technology trade with China, noting that Chinese weapons sold to Tehran have in the past been transferred to Hamas and Hezbollah. ", "It's kosher: Israel embraces Chinese investment", "Alibaba Invests in Israeli Cyber-Focused Venture Fund", "Israel applies to become founding member of China development bank", "Li Ka-shing fund leads US$10.8 mln Israel investment", "China's Fosun International to Acquire Phoenix Holdings From Israel's Delek", "China's Fosun to Buy Israeli Co Ahava for $77 Million", "China is increasingly becoming key for Israel's high-tech industry", "China's tech money heads for Israel as US welcome wanes", "China consortium buys Israel's Playtika for $4.4 billion", "China's Midea buys Israeli co Servotronix", "Playtika Acquires Israel's Jelly Button to Expand Game Offerings", "China Remains Israel's Fastest Growing Source Of Tourists In 2017", "Return of the Red Card: Israel-China-U.S. Triangle", "China seeks ban on its citizens working in West Bank", "The Chinese Penetration of Israeli Media", "Bank of China Says It Hasn't Helped Hamas", "The China bank is not the issue here, dude", "Israel delivers shocking blow to Bank of China terror victims' families case", "China Can Posture, but It Can't Bring Peace to the Middle East", "Israel Makes Case to China for Iran Sanctions", "China Condemns Israel's Attack on Gaza Aid Flotilla", "Ministry of Foreign Affairs of the People's Republic of China", "General Assembly Votes Overwhelmingly to Accord Palestine 'Non-Member Observer State' Status in United Nations", "India and China Back Unified Palestinian Government", "China repeats support for Palestinian U.N. bid", "U.S. casts lonely vote against establishing war crimes inquiry in Gaza", "Foreign Ministry Spokesperson Hong Lei's Regular Press Conference on July 9, 2014", "China pushes four-point Israeli-Palestinian peace plan", "Israel accuses Chinese state TV of 'blatant antisemitism', "Israel accuses China state TV of 'blatant anti-Semitism'. Danit Gal is a consultant and researcher focusing on technology ethics, governance, safety, security, and strategy. . In the past 20 years, 97 percent of known investments in Israel from the People's Republic of China (PRC) were in the technology sector. [4][5][6] Israel maintains an embassy in Beijing and is planning to open a new consulate in Chengdu, its third in Mainland China. 1111 19th Street NW - Suite 500 Politicians are also hastening to increase the cooperation between the two countries with former Israeli Economy Minister Naftali Bennett recently visiting China to launch the Israeli Business Center in Shanghai, an initiative that goes hand-in-hand with the China-Israel Joint Committee on Innovation Cooperation, a three-year action plan to strengthen innovation cooperation. Chinese investment in . Shira Efronis director of research at Israel Policy Forum. [35][37][34][39] The cultural similarities between the Chinese and Jewish civilizations with both nations originating thousands of years ago have drawn the two countries closer together making the two countries natural partners in the international community. The Institute is a 501(c)3 organization; all donations are tax-deductible. The United States is also taking action to form atechnological alliancebetween advanced democracies, and the required measures for cooperation with the United States would also pave the way for Israeli involvement in this emerging multilateral framework. Since the 1980s, Israel has had robust technological cooperation and trade with the U.S. while often, in deference to U.S. security concerns, limiting the sale of some technologies to China. [73], On 14 August 2011, General Chen Bingde, Chief of the People's Liberation Army General Staff Department, made an official visit to Israel,[74] scheduled for three days. Although China may see Israel as more lenient than the U.S. in sharing technology, Israel may ultimately act similarly cautiously as it does not . Reference to these stated principles highlights the shared values of the Israeli-American partnership, which counter those of authoritarian regimes, primarily China and Russia. As of 2020 Israel runs a trade surplus with the US and a trade deficit with China. [105] In August 2012, with Chinese-Israeli trade growing, the Beijing University of International Business and Economics in Beijing set up a department dedicated to studying Israeli economics and Judaism, while some Chinese universities began offering Hebrew courses. In other words, without any explicit anti-China statements that would embarrass his Saudi hosts, the Biden administration promoted practical measures mobilizing their support for US efforts in the Great Power competition. According to the read-out from the Israeli President's Office, Herzog and Xi discussed opportunities to enhance Israeli-Chinese bilateral ties ahead of the 30th anniversary of the establishment of diplomatic relations, in honor of which Herzog and Xi invited each other to visit their respective countries. [37][38], Though Israel established diplomatic relations with China in 1992, the ties between the Chinese and Jewish people remain centuries old in addition to Israel and China being products of ancient civilizations dating back thousands of years. The declaration by the leaders on the technological partnership will be put to the test in its implementationthe success of both National Security Councils, not only in launching processes leading to actual progress in fields of technological cooperation, but also in reinforcing the strategic relations between Israel and the United States, Israels great ally. the chief American concern is with Chinese investments in the fields of technology that are considered . Israel's arms sales to China. Li has been the pioneer of Chinese investment in Israel and with his investments in Israeli high-tech, Li set the stage for Hong Kong's business elite stressing that it is financially sound and even necessary for the future of Chinese economic prosperity to invest in emerging Israeli technology companies. Please include what you were doing when this page came up and the Cloudflare Ray ID found at the bottom of this page. He has written for Geopolitica and several Italian online and print media. Second, China might transfer the technology or other information to Israel's enemies in Iran or elsewhere. Both nations had maintained some trade links, which stood at US$30 million in 1992. It is suspected and expected that a some of Irans nuclear technology originates in China, directly or through Pakistan. The Israeli government responded to this pressure partially by establishing an advisorymechanismfor national security aspects of foreign investments in areas subject to regulation. [82][83] China is also Israel's third largest trading partner and export market after the United States and the European Union with China being Israel's largest export market in East Asia. Please use the following structure: example@domain.com, Send me The Times of Israel Daily Edition. Canada bans TikTok from government devices over security concerns. [11] Convergence of interests has made them natural partners. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. The committee's chilling effect on trade and ties with China is . In December the 7th Yunnan-Israel Innovation cooperation Forum was held jointly in a hybrid event held both in Tel Aviv as well as Chinas Yunnan province, engaging Israeli tech companies and Chinese government companies. Actions like these on the part of Huawei have led to increased scrutiny and blacklisting of the company in many countries in the West. If tensions escalate further, Israel could risk finding its American and Chinese trade partners less forgiving of its delicate balance. The Israeli assurance to the US, is a first step of Israel choosing sides, but Israel should not wait for much longer before decisive steps. The secret, circuitous journey began late one night in February 1979 when an unmarked Boeing 707 took off from Ben Gurion Airport in Tel Aviv, Israel. [13] Since 2013, Chinese investors have begun to show a growing interest in Israeli firms. [137][138][136], On July 23, 2014, China was among the 29 nations who voted in favor of the investigation by the United Nations Human Rights Council of war crimes committed by Israel during Operation Protective Edge, with the United States being the only nation in dissent. "The Evolution of Sino-Israeli Relations". 2. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. [108], Bilateral trade between the two nations increased from $50 million to $10 billion in 2013. American fears of espionage led to the Israeli governments reassessment of Chinas successful bid to operate the country'sbiggest port in Haifa, which regularly hosts visits fromU.S. Navy ships for bilateral exercises and port calls. For Israel, this placed the dilemma of commercial versus political and national security interests at the . Although the two states did not normalize their relations until 1992, since then the bilateral relationship has developed extensively, especially in the economic sphere. Chinese investments in Israel have grown substantially and include investments in high-tech companies that produce sensitive technologies as well as the construction and operation of key infrastructure projects. With mounting political pressure from its American allies and promising Chinese trade prospects, Israel is caught between its two largest and technology-hungry trade partners. On November 5, 2021, a federal jury in Cincinnati determined that Xu was guilty of conspiring to and attempting to commit commercial espionage and stealing trade secrets from the U.S. Xu is the deputy division director of the Sixth Bureau of the Jiangsu Province of the Chinese Ministry of State Security, the primary intelligence agency of the Chinese Communist Party (CCP). is the Rueven International Fellow at The Washington Institute, a senior research fellow at the Institute for National Security Studies, and former head of the Strategic Division in the IDF General Staffs Planning Directorate. Technological ties between Israel and China have always been a central and constant element of their relationship. China-Israel Industrial R&D Cooperation Framework MOU Between Israel and the People's Republic of China. 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